IGS 10a Lecture Notes - Lecture 3: Christine Lagarde, Jim Yong Kim, Washington Consensus
2 Sep 2016
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Imf and world bank created in 1944 conference in bretton woods, nh. They were the brainchild of british advisor john m. keynes and us official harry d. *growth in imf membership: under 50 over 190. As controversial as they are, countries remain members (can leave) The fund is a bank and the bank is a fund. - john maynard keynes. The imf is structured like a commercial bank. World bank structured like a traditional investment fund. Members deposit small amounts of money as financial backing for organization (bank bil, imf tril) Small amount of resources to raise money on global financial markets by issuing bonds. Bonds - paper that promise return to investor plus interest. Uses money to loan out to membership in need and pays off bonds when due. Highly leveraged - small base with capability to borrow billions from actors.
